Payday lending apps have been establishing themselves as disruptive business models focussing on easy money lending solutions without overwhelming paperwork. As consumers go gaga over the payday lending apps like Earnin and Moneylion, the industry is booming with new ideas and concepts. Entrepreneurs and investors have welcomed the groundbreaking idea to explore new ways to earn profits while alluring the users.
While loan seekers love the notion owing to its ability to extend benefits in terms of bank trips, shopping discounts, and more, lenders have a comprehensive toolkit to manage logs and receive payments via an automated system.
Today, we are going to explore this realm a bit more and check out how payday startups can take a step ahead with finance app development, something just like the most popular, Earnin.
And, here we go!!!
Previously known as ActiveHours, Earning is an easy-to-use financial service app that allows users with access to their paychecks, anytime you need. Simply put, it lets the hourly as well as regular employees to withdraw a portion of their paycheck before the payday. The system keeps track of users’ income and their work hours to set the loan limit. Users can withdraw the amount only within that limit. Earning is available across Android and iOS devices free of charge.
What makes Earnin different from other payday apps?
Earning is not another money investment app. Rather, it is based on a unique concept that favors gig and weekly/ monthly salary workers. The notion of similar apps is dedicated to helping the users to unlock their earnings without even having to wait for the paydays.
Which verticals are benefited by the payday lending apps?
Loans are needed by users in various walks of their life. Some of the categories of users who are most benefited by such apps include:
- Angel investors
- Startup funding/ incubators
- Venture capitalists
- Investment brokers and stock firms
- Financial institutions
Things to be considered by payday startups while developing a payday app like Earnin
1. Identify the user’s pain points
Budgeting and finance is the realm where nothing can really make things easier for the people. The researchers have made it all the more apparent. According to the research, the financial shortfalls like payday loans and bank overdrafts happen 18% more when there is a great mismatch between the timing someone’s income, plus the bills they have.
Furthermore, as per the report from Earnin, “People pay $100 billion a year in fees while they wait for their paychecks.” So, it is essential to analyze the pain points of customers and provide solutions to them. When it comes to the solutions, the payday startup needs to provide solutions as what exactly your customers are looking for. Once you have a clear idea of the target market’s demands, you’ll be able to enhance your value proposition and make the best of opportunity.
When it comes to finances, users’ don’t really find it wise to wait. They need to stay updated on every step involved in a transaction to make sure their money is in safe hands. Therefore, implement a solution that takes into account the feature of transparency. Be informative and open about the finances right from the user’s registration to the completion of the transaction or even after that. And, the app also concludes the user’s pay cycle and debits their accounts the amount they have borrowed on their payday.
3. Optimum security
Make sure your app takes secure payment options into account strongly backed by encryption. User’s data including login credentials, transaction details, etc. should be stored in secured systems.
4. Better logs
Transaction records are an integral part of the banking user experience. Mobile lending apps create automated transaction records for users. These records should be easily manageable and should be easily accessible within the app. Efficient record management also allows users to make regular payments.
Features to Consider:
- User registration
- User verification via text message/ email
- Comprehensive profile creation/ updation
- Manageable dashboard for professional profile creation
- Salary information saved securely over the central database
- Third-party app integrations facilitating easy options for Shopping/ Travelling/ Paying educational fee, etc.
- Secure money transactions
- Application management
- Category-based search
- In-app lending amount calculator
- Profile management dashboard
- Flexible payment module
- Offers and discounts to boost customer loyalty
- Statements including loan/ expenses/ and more
- Loan limit calculator
- FAQs and help section
- Push notifications
Matellio LLC is a global provider of best-in-class software engineering services. With over two decades of experience, our team has fostered digital edge for numerous ideas through expert IT solutions. We take pride in having delivered more than 600 successful projects across 107 nations while assisting clients through the journey of ideation to deployment. Our user-centric approach and customer-friendly methodology enable us to address each project with time-tested expertise that renders maximum client satisfaction. Aiming to be irreplaceable, we take pride in engineering solutions that support us to develop long-lasting relationships with clients as we continue delivering phenomenal services.